Self-storage companies sell the contents of customers’ spaces to recoup losses only after the customer has failed to pay rent for a period of time set by law and has not responded to several formal requests for payment in writing and by phone. This lien process is governed by state laws that control every step a self-storage company should take. There is also government oversight to ensure these rules are followed.
A self-storage company can only reach its customers with the address, phone number and email provided by the customer. It is therefore imperative for customers to keep this information up to date. Otherwise, important account alerts and notifications will be missed.
An auction is the ultimate result of a lien. A lien is a right to hold property belonging to another person until the debt owed by that person is paid. If the debt is not paid, that lien right permits an operator to sell the customer’s goods to pay the debt. These lien sale auctions, however, seldom bring in enough money to cover both the rent due and the cost of holding the sale. Auctions also are time-consuming and take employees away from their regular job duties. In short, self-storage companies strongly prefer that their customers pay their rent on time because an auction is almost always a money-losing proposition.
If the auction sale does not cover the balance owed by the customer, the remaining amount due often goes to a collection agency. If the auction brings in more, the excess is sent via check to the customer as legally required. Any such checks that are returned by mail as undeliverable are deemed abandoned property and disbursed as required by the applicable state law.
Once it is determined that a storage auction must take place, Budget Storage Group facilities provide the proper information to the storage auction company and advertise the sale through their normal channels. Those interested in purchasing the contents of a storage unit can visit the auction website to see what is available, register to bid and then follow the auction as it progresses online.
The auction site we use is StorageTreasures.com.